FXstreet.com (Córdoba) - After an extremely quiet European session, another wave of selling hit the dollar, sending EUR/USD toward a fresh 7-month high above 1.3200 during the New York session amid signs of progress in US 'fiscal cliff' talks.

EUR/USD rose over 60 pips throughout the session and hit its highest since early May at 1.3237 before stalling. At time of writing, the cross is trading at the 1.3225 zone, recording a 0.5% gain on the day.

From a technical view, Valeria Bednarik, chief analyst at FXstreet.com comments that the rally may extend now towards next strong resistance around 1.3280, past April 30th high. "A daily close above, will likely open doors for another 100 pips gain, targeting 1.3385 area, March highs".

"Pullbacks will be seen as buying opportunities, and a reversal is now out of the picture, as price needs to fall at least below 1.2970 to start considering a top has been made. Short term supports now come at 1.3210, and 1.3180 price zone", she said.